HL Deb 11 March 1996 vol 570 c51WA
Lord Tebbit

asked Her Majesty's Government:

Whether they now regard the withdrawal of sterling from the ERM on 16th September 1992 as having been helpful to the United Kingdom economy.

Lord Mackay of Ardbrecknish

It is not possible to assess the precise effects of sterling's departure from the ERM. However, during sterling's membership of the ERM, inflation fell sharply and the economy began to recover from recession. The Government's policies of securing sustainable growth based on low inflation have built on this foundation. Recovery is now into its fourth year, unemployment has fallen by over 750,000 since its peak in 1992 and inflation has been below 4 per cent. for 40 consecutive months, the best performance for almost 50 years.